Bitcoin spikes 10 percent as crypto fans celebrate ‘Uptober’

The price of Bitcoin spiked 10 percent early Friday as the cryptocurrency market bounced back from a bruising September. 

Bitcoin was trading at about $47,700 on Friday morning, up about 10 percent from $43,650 at midnight, according to Coinbase data. 

Other cryptocurrencies also shot up during the first hours of October. Ethereum and XRP both surged about 8 percent to $3,230 and $1.03, respectively. 

Friday morning’s surge came after a bumpy September for the cryptocurrency market. Bitcoin started the month trading at around $47,400 before climbing as high as $53,000 on Sept. 6. and then declining to $43,600 by late Thursday.

September was Bitcoin’s worst month since May. 

Much of Friday morning’s action — which many crypto fanatics have dubbed the beginning of “Uptober” — came during an astounding 20 minute run between 6:25 a.m. and 6:45 a.m., when Bitcoin surged from $44,900 to nearly $47,400. 

Some crypto analysts attributed that jump to a squeeze on Bitcoin derivatives markets that forced shorts to sell their positions. 

“Squeeeeeeeeezed,” wrote analyst Daniel Joe on Twitter. “539 #BTC shorts liquidated in 1 minute.”

Crypto traders may have also been digesting comments from Federal Reserve chief Jerome Powell, who told Congress Thursday that he has “no intention to ban” cryptocurrencies. 

Powell has signaled for months that “stablecoins,” which are cryptocurrencies that are tied to the US dollar, may face more regulation. He has also said that cryptocurrencies as a whole present some risk to the financial system. 

China, meanwhile, declared all crypto transactions illegal last week and pledged to further crack down on mining operations.